Investing in commodities is not for the faint-hearted. It takes nerves of steel to endure years of pain. Generally for most retail investors, investing in commodities directly is not a wise strategy. However commodities do have a role in a well-diversified portfolio. So adding a small percentage of gold for instance can help protect a …
Continue reading ‘Commodities Go Through Periods of Booms and Busts’ »
The dramatic decline of the S&P 500 last March and the subsequent melt-up is one of the faster recoveries in the history of the index. The benchmark index fell 34% by late March of 2020 only to completely recover all that loss in less than 6 months. Previous drawdowns such as the dot-com bubble crash …
Continue reading ‘Notable S&P 500 Drawdown and Recovery Cycles: Chart’ »
One of the best sectors to invest for the long-term is the North American railroad sector. Railroad stocks offer many unique advantages over stocks from other sectors. For instance, the industry is dominated by a handful of companies effectively making it an oligopoly. Moreover for many shippers or locations, railroad companies are a monopoly. I …
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I have written many times before that no country is the consistent winner in equity market returns every year. The winner in one year could be the loser in next and vice versa. Though US stocks have performed very well for over a decade now, their leadership could be overtaken by their foreign peers. According …
Continue reading ‘Why Foreign Stocks Could Beat U.S. Stocks Over The Next Few Years’ »